Question 1

Neoclassical growth theory attributes economic growth to

Accepted Answer

A)  technological change. 
B)  the law of diminishing returns. 
C)  fiscal policy. 
D)  increasing population growth. 
A)  technological change. 
B)  the law of diminishing returns. 
C)  fiscal policy. 
D)  increasing population growth. A

Question 2

The one- third rule

Accepted Answer

A)  says that if capital and labor are each increased 1 percent, then real GDP per person will increase by 1/3 percent. 
B)  states that a country's GDP is comprised of one- third international trade. 
C)  says that a 1 percent increase in capital per hour of labor leads to a 1/3 percent increase in real GDP per hour of labor. 
D)  relates changes in productivity growth to changes in real GDP growth. 
A)  says that if capital and labor are each increased 1 percent, then real GDP per person will increase by 1/3 percent. 
B)  states that a country's GDP is comprised of one- third international trade. 
C)  says that a 1 percent increase in capital per hour of labor leads to a 1/3 percent increase in real GDP per hour of labor. 
D)  relates changes in productivity growth to changes in real GDP growth. C

Question 3

If the nation's capital stock increases so that workers become more productive, the

Accepted Answer

A)  demand for labor will decrease 
B)  supply of labor will increase 
C)  demand for labor will increase 
D)  supply of labor will decrease 
A)  demand for labor will decrease 
B)  supply of labor will increase 
C)  demand for labor will increase 
D)  supply of labor will decrease C

Question 4

Strategy to Address Dependence on Foreign Workers, Labour Market Demands
The prime minister of Malaysia announced his government's "immediate focus would be to enhanc development and improve the quality of education." By "the constant upgrading of skills of the co workforce" he hoped to improve the country's "global competitiveness and raise average incomes of workers.."
Thestar.com.my 11/21/200
The long- run benefit of enhancing "skill development and improve....education" is to

Accepted Answer

A)  speed economic growth. 
B)  improve property rights. 
C)  smooth the growth of labor productivity. 
D)  increase labor supply. 
A)  speed economic growth. 
B)  improve property rights. 
C)  smooth the growth of labor productivity. 
D)  increase labor supply.

Question 5

An increase in physical capital or a technological advance

Accepted Answer

A)  decreases demand for labor. 
B)  shifts the production function downward. 
C)  raises the real wage rate. 
D)  decreases the quantity of labor employed. 
A)  decreases demand for labor. 
B)  shifts the production function downward. 
C)  raises the real wage rate. 
D)  decreases the quantity of labor employed.

Question 6

-In the above figure, the equilibrium level of labor is

Accepted Answer

A)  200 billion hours. 
B)  100 billion hours. 
C)  150 billion hours. 
D)  none of the above 
A)  200 billion hours. 
B)  100 billion hours. 
C)  150 billion hours. 
D)  none of the above

Question 7

The one- third rule

Accepted Answer

A)  helps determine the demand for labor. 
B)  explains why the aggregate production function shifts. 
C)  is used to show how capital contributes to an increase in output. 
D)  is used to show how increases in labor contribute to increases in real GDP per person. 
A)  helps determine the demand for labor. 
B)  explains why the aggregate production function shifts. 
C)  is used to show how capital contributes to an increase in output. 
D)  is used to show how increases in labor contribute to increases in real GDP per person.

Question 8

The aggregate production function shows how varies with _ _.

Accepted Answer

A)  leisure; labor 
B)  -labor; capital 
C) -labor; leisure 
D)  -real GDP; labor 
A)  leisure; labor 
B)  -labor; capital 
C) -labor; leisure 
D)  -real GDP; labor

Question 9

The higher the real wage rate, the higher the labor force participation rate.

Accepted Answer

A) True 
 B)False

Question 10

Growth accounting explains changes in labor productivity by

Accepted Answer

A)  only looking at technological change. 
B)  only looking at capital per hour of labor. 
C)  using the unemployment rate over time. 
D)  measuring capital per hour of labor and technological change. 
A)  only looking at technological change. 
B)  only looking at capital per hour of labor. 
C)  using the unemployment rate over time. 
D)  measuring capital per hour of labor and technological change.

Question 11

All else equal, an increase in population decreases potential GDP.

Accepted Answer

A) True 
 B)False

Question 12

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

Accepted Answer

A)  35 years 
B)  70 years 
C)  10 year 2 
D)  100 years 
A)  35 years 
B)  70 years 
C)  10 year 2 
D)  100 years

Question 13

A movement along the aggregate production function is the result of a change in

Accepted Answer

A)  the quantity of labor 
B)  capital 
C)  technology 
D)  interest rates 
A)  the quantity of labor 
B)  capital 
C)  technology 
D)  interest rates

Question 14

The aggregate production function

Accepted Answer

A)  cannot show the impacts of productivity improvements. 
B)  shows that real GDP can increase because of increased productivity as well as increased labor hours. 
C)  measures the productivity of labor as leisure decreases. 
D)  increases only with increases in productivity. 
A)  cannot show the impacts of productivity improvements. 
B)  shows that real GDP can increase because of increased productivity as well as increased labor hours. 
C)  measures the productivity of labor as leisure decreases. 
D)  increases only with increases in productivity.

Question 15

Over the past 100 years, real GDP per person in the United States has grown at a rate of _ per year, on the average.

Accepted Answer

A)  3.6 percent 
B)  1 percent 
C)  0.5 percent 
D)  2 percent 
A)  3.6 percent 
B)  1 percent 
C)  0.5 percent 
D)  2 percent

Question 16

If the saving rate increases, a country's growth rate of real GDP per hour of labor and capital per hour of labor .

Accepted Answer

A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases 
A)  increases; increases 
B)  decreases; decreases 
C)  increases; decreases 
D)  decreases; increases

Question 17

Over the last year, country Y's capital per hour of labor grew 15 percent while labor productivity increased 6 percent. Using the one- third rule, percentage point(s) of this country's growth was the result of capital growth and percentage point(s) was the result of advances in technology.

Accepted Answer

A)  2; 13 
B)  5; 1 
C)  5; 10 
D)  1; 5 
A)  2; 13 
B)  5; 1 
C)  5; 10 
D)  1; 5

Question 18

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

Accepted Answer

A) True 
 B)False

Question 19

One policy that would increase the saving rate would be

Accepted Answer

A)  raising taxes on the returns to investment. 
B)  raising taxes on saving. 
C)  taxing consumption. 
D)  raising taxes on the returns to saving. 
A)  raising taxes on the returns to investment. 
B)  raising taxes on saving. 
C)  taxing consumption. 
D)  raising taxes on the returns to saving.

Question 20

Which of the following contributes to an increase in labor productivity?

Accepted Answer

A)  decreased investment 
B)  increased capital stock 
C)  increased consumption expenditure 
D)  All of the above contribute to an increase in labor productivity. 
A)  decreased investment 
B)  increased capital stock 
C)  increased consumption expenditure 
D)  All of the above contribute to an increase in labor productivity.

Neoclassical growth theory attributes economic growth to

The one- third rule

If the nation's capital stock increases so that workers become more productive, the

An increase in physical capital or a technological advance

-In the above figure, the equilibrium level of labor is

The one- third rule

The aggregate production function shows how varies with _ _.

The higher the real wage rate, the higher the labor force participation rate.

Growth accounting explains changes in labor productivity by

All else equal, an increase in population decreases potential GDP.

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

A movement along the aggregate production function is the result of a change in

The aggregate production function

Over the past 100 years, real GDP per person in the United States has grown at a rate of _ per year, on the average.

If the saving rate increases, a country's growth rate of real GDP per hour of labor and capital per hour of labor .

Over the last year, country Y's capital per hour of labor grew 15 percent while labor productivity increased 6 percent. Using the one- third rule, percentage point(s) of this country's growth was the result of capital growth and percentage point(s) was the result of advances in technology.

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

One policy that would increase the saving rate would be

Which of the following contributes to an increase in labor productivity?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

Neoclassical growth theory attributes economic growth to

The one- third rule

If the nation's capital stock increases so that workers become more productive, the

An increase in physical capital or a technological advance

-In the above figure, the equilibrium level of labor is

The one- third rule

The aggregate production function shows how varies with _ _.

The higher the real wage rate, the higher the labor force participation rate.

Growth accounting explains changes in labor productivity by

All else equal, an increase in population decreases potential GDP.

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

A movement along the aggregate production function is the result of a change in

The aggregate production function

Over the past 100 years, real GDP per person in the United States has grown at a rate of _ per year, on the average.

If the saving rate increases, a country's growth rate of real GDP per hour of labor and capital per hour of labor .

Over the last year, country Y's capital per hour of labor grew 15 percent while labor productivity increased 6 percent. Using the one- third rule, percentage point(s) of this country's growth was the result of capital growth and percentage point(s) was the result of advances in technology.

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

One policy that would increase the saving rate would be

Which of the following contributes to an increase in labor productivity?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters